Financial Results - Dec 2008

1Guaranty Trust Bank

Guaranty Trust Bank plc

Financial Results - Dec 2008(10 months)


Important Notice

This presentation is based on the financial results of the Bank’s audited results for the period ended December 2008 consistent with Nigerian GAAP only. Guaranty Trust Bank Plc (“GTBank”, the “Bank”) has obtained some information in this presentation from sources it believes to be reliable. Although GTBank has taken all reasonable care to ensure that the information herein is accurate and correct, GTBank makes no representation or warranty, express or implied, as to the accuracy, correctness or completeness of such information.

Furthermore, GTBank makes no representation or warranty, express or implied, that its future operating, financial or other results will be consistent with results implied, directly or indirectly, by such information or with GTBank’s past operating, financial or other results. Any information herein is as of the date of this presentation and may change without notice. GTBank undertakes no obligation to update the information in this presentation. In addition, some of the information in this presentation may be condensed or incomplete, and this presentation may not contain all material information in respect of GTBank. Except where indicated, the exchange rate adopted throughout the presentation is US$1 to N139.5 (official exchange rate December 31, 2008). Unless stated otherwise, all figures and ratios have NOT been annualized and are reported on a 10month basis.

This presentation also contains “forward-looking statements” that relate to, among other things, GTBank’s plans, objectives, goals, strategies, future operations and performance. Such forward-looking statements may be characterised by words such as “estimates,” “expects,” “projects,” “believes,” “intends,” “plans,”“may,” “will” and “should” and similar expressions but are not the exclusive means of identifying such statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause GTBank’s operating, financial or other results to be materially different from the operating, financial or other results expressed or implied by such statements. Although GTBank believes the basis for such forward-looking statements to be fair and reasonable, GTBank makes no representation or warranty, express or implied, as to the fairness or reasonableness of such forward-looking statements. Furthermore, GTBank makes no representation or warranty, express or implied, that the operating, financial or other results anticipated by such forward-looking statements will be achieved. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. GTBank undertakes no obligation to update the forward-looking statements in this presentation.


Outline

• GTBank’s Financial Highlights

• GTBank Overview (DEC 2008)

• Operating Environment

• Business Strategy and Objectives


GTBank’s Financial Highlights


GTBank’s Financial Highlights (YE Dec 2008)

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* Comprised of Total Assets and Contingents** Using annualized estimates

All dollar conversions are computed at N139.5 - $1

DEC 2008(10 months)

PBT - $247m

Assets* - $9.5bn

NPL - 1.7%

Loans - $2.99bn Shareholders’ Funds - $1.3bn

Deposits - $3.2bn

Robust & Sustainable Growth (10 months)

PBT - +26.7%

Assets* - +27.4% Loans - +42.8%

Deposits - +25.2%

Shareholders’ Funds - +11.5%Shareholders’ Funds - +11.5%

NPL – one of Industry’s lowest

Growing International, and Local presence

• Continued Increase in local branch network and alternate delivery channels

• Opened new bank subsidiary and commenced operations in London in May 2008

• Received provisional license to operate in Liberia

• Completed Anglophone Phase of Strategic West African expansion

• **RoAA of 5.0% & **RoAE of 24.3%, up by 40% and 18% (respectively) from Feb 2008

• Over 1.35m retail customers as of Dec 08 – up by 21% from 1.07m in Feb 08

• Cost/Income ratio of 50.69%, improved by 5.2% from Feb 2008

• Most Customer Focused and Friendly Bank [retail] in 2008 by KPMG and Vanguard; Best Bank in Corporate Governance in 2008 by Vanguard

Continuously Improving

Global Medium Term Note Program

•Setup $2bn GMTN program in June 08;

•Access to international capital markets with greater flexibility;

•Program allows multi-currency issues if and when required;

•Aim is to bolster bank’s FCY balance sheet and meet client’s demand


Income Statement

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* - Annualized estimatesAll dollar conversions are computed at N139.5 - $1

Profit and Loss Accounts10 months ended 31 December 2008 Group Group Bank Bank

31 Dec. 2008 29 Feb. 2008 31 Dec. 2008 29 Feb. 2008 YOY YOY10 months 12 months 10 months 12 months Growth* Growth*

$'m $'m $'m $'m Group Bank

GROSS EARNINGS 746.38 584.20 682.04 555.30 53% 47%

INTEREST AND DISCOUNT INCOME 488.93 379.20 459.09 365.92 55% 51%Lease finance income 0.02 0.02 0.02 0.02 Interest expense (160.31) (139.18) (152.87) (136.15)

INTEREST MARGIN 328.64 240.04 306.24 229.79 64% 60%Loan loss expense (net) (28.98) (28.20) (28.23) (27.56)

299.66 211.84 278.01 202.22 Other income 257.43 204.98 222.93 189.36

557.10 416.81 500.94 391.58 Operating expenses (304.93) (220.63) (253.93) (196.61)

PROFIT BEFORE TAXATION 252.17 196.19 247.00 194.97 54% 52%Taxation (49.19) (44.44) (45.76) (40.92)

PROFIT AFTER TAXATION 202.98 151.75 201.24 154.05 61% 57%


Balance Sheet

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* - Growth in 10 months (10 month Dec 08 vs. 12 month Feb 08)All dollar conversions are computed at N139.5 - $1

Balance SheetsAs at 31 December 2008 Group Group Bank Bank

31 Dec. 2008 29 Feb. 2008 31 Dec. 2008 29 Feb. 2008 YOY YOY10 months 12 months 10 months 12 months Growth* Growth*

$'m $'m $'m $'m Group BankASSETSCash and short-term funds 2,024 855 1,806 742 137% 143%Short term investments 1,018 1,287 914 1,252 -21% -27%Loans and advances 3,002 2,066 2,985 2,090 45% 43%Long term investments 85 53 287 159 60% 80%Fixed assets 284 244 258 227 17% 14%Other assets 489 770 356 677 -37% -47%TOTAL ASSETS 6,901 5,274 6,608 5,147 31% 28%

LIABILITIESDeposits and other accounts 3,385 2,602 3,203 2,559 30% 25%Borrowings 451 402 451 402 12% 12%Other liabilities 1,760 1,099 1,667 1,031 60% 62%Equity 1,305 1,171 1,287 1,155 11% 11%

6,901 5,274 6,608 5,147 31% 28%

Contingents 2,971 2,334 2,894 2,312 27% 25%Balance Sheet Size 9,872 7,608 9,502 7,459 30% 27%


Financial Ratios

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* Based on annualized estimates

Key Financials ($ 'm) 28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31-Dec-08 CAGR

Balance Sheet

Total Advances and Loans to Customers 466.20 598.40 815.09 2,089.83 2,985.26 62.39%

Total Deposits from Customers 685.04 1,525.69 2,084.53 2,559.18 3,203.00 49.59%

Shareholders' Funds 259.27 291.37 340.02 1,154.70 1,287.10 51.95%

Total Assets 1,203.57 2,186.96 3,429.17 5,146.95 6,608.01 55.99%

Total Assets and Contingents 1,614.11 2,774.23 4,253.55 7,458.51 9,501.55 58.86%

Profit and Loss Account

Interest Income 109.40 152.97 224.89 365.92 459.09 45.42%

Non-Interest Income 58.03 76.21 107.61 189.36 222.93 42.11%

Profit Before Taxes 50.21 71.86 110.04 194.97 247.00 51.59%

Profit After Taxes 38.21 56.67 93.28 154.05 201.24 54.31%

Performance Ratios

Return on Average Assets (RoAA) 3.41% 3.48% 3.32% 3.59% *5.04%

Return on Average Equity (RoAE) 16.15% 23.63% 27.88% 20.62% *24.28%

Net Interest Margin 6.44% 6.16% 5.40% 6.79% 7.68%

Cost/Income 55.16% 52.01% 54.01% 53.48% 50.69%

Balance Sheet Ratios

Loans to Customers/ Customer's Deposits 63.70% 39.20% 33.40% 70.60% 81.70%

Liquidity Ratio 63.33% 69.22% 69.99% 51.86% 42.00%

Capital Adequacy Ratio 28.95% 22.41% 16.64% 27.55% 22.11%

Asset Quality Ratios

NPL/Total Loans 2.11% 3.37% 2.00% 1.19% 1.70%

Provisions for Loan Losses/NPL 157.25% 120.59% 127.60% 172.00% 122.00%


Milestones

Key Events•GTBank moves year end to December

• In line with recommendations issued in May 2008 by the Central Bank of Nigeria (CBN), GTBank moved its year end from February 28 to December 31.

•GTBank opens UK subsidiary. • GTBank opens Guaranty Trust Bank UK, a fully operational retail bank located at 62 Margaret Street, London.

•Setup $2bn Global Medium Term Note Program (GMTN)

•Launched Asset Management Subsidiary- April 08

International

•GTBank completes Anglo West Africa Expansion• With the acquisition of a provisional operating license in 2008 and the launch of GTBank Liberia in 2009, GTBank completed the Anglophone phase of it’s planned expansion into West Africa

Nigeria•142 Branches •398 strategically located ATMs•1.34million retail customers

Ratings and AwardsRatings (2009)•Agusto & Co. “Aaa”•Fitch “AA-”•Standard & Poors “BB-”Awards• Most Customer Focused Bank (retail) – KPMG 2009• 2nd Most Customer Focused Bank (corporate) – KPMG 2009• Best Bank in Nigeria - JP MorganChase, Oct. 2008 Report• Bank of the Year, Best Bank in Corporate Governance, Most Customer Friendly Bank – Vanguard Awards

• Deal of the Year for Nigeria ‘08 – Banker Magazine Awards

•Nigeria’s first fully automated mobile bank branch

•Nigeria’s first Drive-Through ATMs

•Fully automated E- Branches

•Initiated development of Naira Denominated Mastercards

•Initiated the development of Prepaid Master & Visa Cards

•Developed new Student dedicated accounts

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Growing Presence New Products


GTBank Overview (DEC 2008)


Robust Profitability

Earnings [after tax] $mEarnings [after tax] $m

RoAE and RoAARoAE and RoAA

DividendsDividends

Stable and Consistent GrowthStable and Consistent Growth

Source: Company data, as of 31 December 2008 (10 months) Source: Company data, as of 31 December 2008 (10 months)

Source: Company data, as of 31 December 2008 (10 months)

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CAGR – 54.3%

* - Proposed Final Dividend for Dec 2008. No interim was declared due to new YE

• Stability and Consistency

– Stable and consistent Return on Average Equity post capital raising in 2004 and 2007

– Stable and Consistent Return on Average Asset

– Stable and Consistent Dividend Payout

– Stable and Consistent Growth in Earnings with 53% CAGR over past 5 financial years

38.2156.67

93.28

154.05

201.24

28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31 Dec 2008Profit After Taxes ($ 'm)

Feb 2005 Feb 2006 Feb 2007 Feb 2008 *Dec 2008Total Dividend Per Share EPS

63%67% 73%

59%54%

3.41% 3.48% 3.32% 3.59%5.04%

16.15%

23.63%

27.88%

20.62%

24.28%

28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31-Dec-08

Return on Average Assets (RoAA) Return on Average Equity (RoAE)

## Dividend Payout ratio


Business Overview

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Institutionalbanking

Commercialbanking

Public sector

banking

Retailbanking

• Focus on multinationals and large corporates, with turnover in excess of US$40 m

• Organised in 5 groups: Energy, Telecoms, Corporates, Corporate Finance and Treasury

• Voted Best Bank in Corporate Governance by Vanguard in 2008

• Focus on small & medium companies, with turnover between US$2 m and US$40 m

• Extensive product range: tailor-made solutions and flexibility

• In-depth knowledge of local market

• Focus on: – Federal government– State governments– Local governments and clients

• Focus on retail customers• Rapidly developing business• 142 branches and 398 ATMs• Extensive leverage of alternative distribution

channels

About 400

Over 50,000

Active in allgovernmentsegments

Over 1.34m retail

customers

Active customers

Contribution to GTBankSelected highlights

Informationtechnology

Riskmanagement

Operations/HR

Supported by strong support

centresFinance

14.8%

36.2%

9.6%

9.9%

17.9%

5.8%

28.4%

18.7%

16.8%

46.9%

67.8%

27.2%

Loans Deposits PBT


Regional Presence and Diversification

GTB

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9)• Commenced Operations – Jan 2002• 84% Ownership• 4 Branches• P&L Positive• Total Number of Banks: 13

GTBank(Sierra Leone)

• Commenced Operations – Mar 2002• 78% Ownership• 8 Branches• P&L Positive• Total Number of Banks: 11

GTBank(Gambia)

• Commenced Operations – Mar 2006• 70% Ownership• 10 Branches• P&L Positive• Total Number of Banks: 26

GTBank(Ghana)

• Commenced Operations - May 2008• To facilitate trade and retail between

the UK and West African countries

GTB UK(London)

• Commenced Operations – Mar 2009• 100% Ownership• Total Number of Banks: 8

GTBank(Liberia)

• Regional Expansion into West Africa (WA)

• Completed expansion plans into Anglophone West Africa

• Expansion into Francophone West Africa underway

• Positioning for growth and reforms─Single Currency─Integration of WA economies─Promotion of WA regional trade, gas pipeline etc.

(Others)

• Commenced Operations -May 2002• 74% Ownership• Total Number of Insurance Coys –• US$13.5m profit before taxes (2008)• Strong National Coverage through

GTBank’s regional branch network

Guaranty Trust Assurance plc

• Commenced Operations –April 2008• 100% Ownership• AM products and services to HNIs

and Institutions

GTB Asset Management Limited

• Commenced Operations - Jan 2008• 100% Ownership• Financing of property development

and mortgages

GT Homes Limited

• Commenced Operations - Sep 2006• 99% Ownership• Captive Registrar Services

GTB Registrars Limited

• Commenced Operations - Dec 2006• 100% Ownership• SPV for debut of the $350mm

Eurobond issue in January 2007

GTB Finance BV

GTBank Nigeria

International Non Bank

• Commenced Operations - Feb 1991• Listed on the NSE & LSE• Over 300,000 Shareholders• 6 overseas subsidiaries• 5 Bank Subsidiaries • 5 non-Bank Subsidiaries

GTBank Group

Mauritania Senegal Benin Republic

Togo

Niger Mali Guinea Côte d'Ivoire

Burkina Fasso

Guinea Bissau

• Diversification in profitable business segments with strong medium to long term prospects

• Strengthen Competitive advantage by offering existing clients products to cater to their financial needs.

• Increase profitability and market share

• Focus on customer satisfaction and retention

• Increase operational synergies within financial services offered to clients

StrategicExpansion


Revenue Composition

Revenue growth $m (Gross Earnings)Revenue growth $m (Gross Earnings)

Interest Income Mix $mInterest Income Mix $m Non Interest Income Mix $m Non Interest Income Mix $m

Strong Revenue-Growth modelStrong Revenue-Growth model

Note1. Other fees include Foreign Exchange earnings and other fees

Feb-05 Feb-06 Feb-07 Feb-08 Dec-08

Dealing and Other Securities Placements and Short Term funds Loans and Advances

68%71%

52%

64%

86%

10%31% 4%

5%

45%

3%

26%

10%3%2%29%

109

153

225

366

459


Commissions Fees and charges Other Incomes

40% 45%51%

47%44%

39%43%

36%

38%38%

18%

15%

13%

12%21%

5876

108

189

223

Source: Company data, as of 31 December 2008 (10 months)Source: Company data, as of 31 December 2008 (10 months)

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CAGR – 45.4%

CAGR – 42.1%

CAGR – 44.3%

• Strong Revenue Growth

– 45.4% CAGR for Interest Income Mix

– 42.1% CAGR for Non- Interest Income Mix

– Total Revenue 5 year CAGR of 44.3%

• Growth generated by increased lending opportunities in the real sector, resulting in greater opportunities for fees and commissions.

• Increased transactions volumes to generate increased income from transaction fees, charges, commissions and foreign exchange earnings

109.40 152.97224.89

365.92459.09

58.0376.21

107.61

189.36

222.93

28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31 Dec 2008

Interest Income Non-Interest Income

15

Feb-07 Feb-08 Dec-08Staff Expenses Depreciat ion Operat ing Expenses

Guaranty Trust Bank

Stable Operating Cost profile

Efficiency and Productivity Improvements

Stable Operating Cost profile

Cost/Income ratioCost/Income ratio

Branches and EmployeesBranches and Employees


Efficient and Conservative Cost ProfileEfficient and Conservative Cost Profile


28% 29%30%12%

13%10%60%

58%

60%

GTB

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9)• Conservative cost profile

– Cost to income ratio of 50.69%

– Below management’s maximum of 60%

• Stable Cost profile

– Maintained low infrastructure related costs such as power etc through innovative operational policies.

– Personnel costs in line with industry

• GTBank remains one of the most efficient in Nigerian banking industry

54.01%53.48%

50.69%

28-Feb-07 28-Feb-08 31 Dec 2008Cost to Income

23551894

1617

142131

102

0

500

1000

1500

2000

2500

28-Feb-07 28-Feb-08 31-Dec-080

50

100

150

Staff Branches

`


Strong Balance Sheet Growth

Funding MixFunding Mix

Asset, Loan and Deposit Growth $bnAsset, Loan and Deposit Growth $bn

Asset Base and ComponentsAsset Base and Components

CommentsComments• Strong asset and deposit growth of 58.9% and 49.6%

respectively (CAGR Feb 2005 – Dec 2008)

• Asset growth driven by government reforms and recent economic growth in the Nigerian economy

• Diverse Funding mix with priority on increasing deposits through steady growth and optimization of branches and delivery channels

• Increasingly utilizing funds to high margin top-end quality loan activities

• Funding base diversified further through issue of US$ 350m Eurobond and US$ 824m GDRs


Source: Company data, as of 31 December 2008 (10 months)Source: Company data, as of 31 December 2008 (10 months)

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1.612.77

4.25

7.46

9.50

0.691.53 2.08

2.563.20

0.47 0.60 0.82 2.09 2.99

Total Loans Total Deposits Total Assets & Contingents

28% 24% 26%14%

27%

17%34% 33%

24%14%

39%27% 24%

41%45%

4%3%

4%14% 11% 15% 18%

9%

2%2%


Cash and short-term funds Short term investments Loans and advances Long term investments Other assets

57%70%

61%50% 48%

4%

3%12%

8% 7%

17%

14% 17%

20% 25%

22%13% 10%

22% 19%


Deposits and other accounts Borrowings Other Liabilit ies Equity


Strong Net Interest Margins

Net Interest MarginNet Interest Margin

Yield on Interest Earning AssetsYield on Interest Earning Assets

Cost of Interest Bearing LiabilitiesCost of Interest Bearing Liabilities

CommentsComments

•Consistently Strong NIM

•Yield and Cost of liabilities were generally higher in the industry due to initial anticipation of common YE among banks. This fuelled fierce competition for deposits which drove rates higher.

•The CBN has released a recent directive capping loan interest rates at 22% and deposit rates at 15% to avoid similar spikes in the renewed drive to a common year end.

•Consistently low cost of liabilities

•Growth in demand deposits through extensive branch network and increase in alternate delivery channels.

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Source: Company data, as of 31 December 2008


5.40%

6.79%7.68%

28-Feb-07 28-Feb-08 31-Dec-08

Net Interest Margin

4.09%3.70%

5.30%

Feb-07 Feb-08 Dec-08

Average Cost of Liabilities

9.32% 9.88%

12.98%

Feb-07 Feb-08 Dec-08

Average Yeild on Assets

18

28.95%

22.41%

16.64%

27.55%

22.11%

28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31-Dec-08Capital Adequacy Ratio

Guaranty Trust Bank

Capital Adequacy and Liquidity

Liquidity RatioLiquidity Ratio

Capital Adequacy RatioCapital Adequacy Ratio

Loan to Deposit RatioLoan to Deposit Ratio

CommentsComments


Source: Company data, as of 31 December 2008 Source: Company data, as of 31 December 2008

•Capital Adequacy well above Basel requirement of 10%

•Strong liquidity ratio above regulatory minimum of 25%

•Loan to Deposit ratio shows growth in lending post January 2007 Eurobond offering

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63.70%

39.20%33.40%

70.60%

81.70%

28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31-Dec-08

Loans to Customers/ Customer's Deposits

63.33%69.22% 69.99%

51.86%42.00%

28-Feb-05 28-Feb-06 28-Feb-07 28-Feb-08 31-Dec-08Liquidity Ratio

19

• GTBank is taking advantage of quality lending opportunities in the institutional and commercial banking space

• Portfolio well spread across sectors with concentration is stable and established institutions

• Consistently improving asset quality on the back of sound risk management practices

– NPL ratio of 1.7% - within Management’s target of < 5%

• High coverage ratio - well above 100%

• Foreign exchange risk averted through proper matching of dollar funding (e.g. Eurobond) to dollar generating clients only. This applies across all forms of foreign exchange transactions.

Loan Portfolio – Diversification and Quality

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

28-Feb-07 28-Feb-08 31-Dec-080.00%20.00%40.00%60.00%80.00%100.00%120.00%140.00%160.00%180.00%200.00%

NPL/Total Loans Provisions for Loan Losses/NPL

Guaranty Trust Bank

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NPL and Coverage RatiosNPL and Coverage Ratios

Best in Class in Nigerian banking industryBest in Class in Nigerian banking industry



Transportation & Communication,

21.89%

Public Utilities, 0.25%Finance and

Insurance, 8.92%

Construction/Real Estate, 11.21%

Manufacturing, 21.22%

Mining, 7.39%

Agriculture, 0.39%

General Commerce, 28.72%

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GTBank’s Profile

Pre-eminent Institutional & Commercial Banking Franchise

Guaranty Trust Bank

GTB

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9)Institutional BankingInstitutional Banking

• Traditionally strong, GTBank continues to cultivate and expand key relationships– Relationships with 90% of Nigeria’s corporates

• Significant boost to the segment following the increase in capital base– Able to increase lending to large borrowers (i.e.

larger single obligor limit)

• Wide product offering which includes:– import finance facilities; export credit lines; US

denominated credits; equipment finance etc

• Focus on stable, high growth industries– oil and gas; telecoms; real estate; construction

manufacturing

• Key Clients

• Margins on Corporate Loans: – 10% average NIM– 0.5% facility fee;

• Also under the corporate banking umbrella– Treasury Group consisting of ALM, Funds

Management and Trading (5 desks) Units– Corporate Finance providing investment

banking advice and loan syndications to existing Clients.

Commercial BankingCommercial Banking

• Covers the ‘middle market’

• Segment organised by geography and industry sectors to achieve proximity to clients to better address their needs

• Broad lending, product offering and customized solutions

– Overdrafts, term loans, commercial paper, bankers acceptances

– Most loans are secured by real estate

Danote Group of Companies

US$1,278 MillionSyndicated Notes Issuance

Facility

Lead Arranger

SyndicationsSyndications

http://inventors.about.com/od/advertisingmedia/ss/Coca_Cola_Comp_3.htm

http://www.answers.com/topic/speedbird-evolution-jpg

21

GTBank’s Profile (Cont’d)

Strategic Distribution Expansion to Capture Increasing Opportunities

Guaranty Trust Bank

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Effectively Employing Alternative DistributionEffectively Employing Alternative Distribution

• Established country’s 1st fully integrated Interactive Call Centre

• Other distribution channels such as internet banking, telephone banking, mobile banking, etc deployed nationwide

• Bank on wheels: mobile banking unit to service remote communities

Retail Banking OpportunityRetail Banking Opportunity

• Servicing increased demand for retail banking products and services by Nigeria’s emerging middle class

• Target market: – Traditionally, the upper segment of the economy;

mainly employees of institutional banking clients– Re-branded to attract a broader segment

• Increased reach efficiently and effectively by employing alternative distribution channels

• GTBank is focused on expanding the liability side while following a prudent approach to lending

• Focused on customer service and support

Numbers of Branches and ATMs

North West

# Branches - 10

# ATMs - 37

South West

# Branches - 25

# ATMs - 63

Lagos

# Branches - 50

# ATMs - 149

North East

# Branches - 14

# ATMs - 29

Abuja - NC

# Branches - 15

# ATMs - 46

South East

# Branches - 28

# ATMs - 74

Total

# Branches - 142

# ATMs – 398

0 1 672 83

131 142

34 39 60 84 108

214

398

Feb 03 Feb 04 Feb 05 Feb 06 Feb 07 Feb 08 Dec 09Branches ATM s



22


Expanding distribution network and channels

Guaranty Trust Bank

GTB

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9)Continuing increase in Branches & ATMs…Continuing increase in Branches & ATMs…Strong and growing local presenceStrong and growing local presence

Growth in transactions via ATMsGrowth in transactions via ATMs

• 398 ATMs located in branches and in strategic locations

– 184 new ATMs deployed since Feb 2008 – Plan to increase ATM network to 1,000 by 2012

• Significant growth recorded in utilisation levels (branches/ATMs)

• 142 branches and cash centres strategically located in key urban areas as of Dec 2008

– 11 branches opened since Feb 2008– Several branches in the pipeline, i.e. in

construction or awaiting CBN approval– Network expected to increase in line with

Management projections of 200 branches by 2012

• Branches are multifunctional catering predominantly for retail, commercial and public sector clients

132 139 141 142

244

298

357

398

Q1 Q2 Q3 YE (10 months)

Branches ATM



229 263340

4,7714,137

5,298

050

100150200250300350400

Q1 Q2 Q30

1,000

2,000

3,000

4,000

5,000

6,000

Value $'m Volume '000

23


Leveraging on alternative distribution channels

Guaranty Trust Bank

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9)…with impact on retail clientele base…with impact on retail clientele baseSustainable growth profile…Sustainable growth profile…

• Telephone banking –

– Available 24/7 to all customers– First fully Interactive Voice Response in

West Africa– Number of active users = 35,359 – Plan to use medium to telemarket and

cross-sell all bank’s products

• Internet banking and internet payment systems

– Gaining traction and popularity amongst users

– Available to all customers– Number of active users = 32,1116

• Bank on Wheels

– First unit launched in April 2007– Cost efficient way to reach unbanked

communities and provide ad-hoc banking services

26,739 27,900 27,243 26,668 26,905

35,359

Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08

Telephone Banking Clientele

Internet Banking Clientele

Retail Clientele (in millions)

1.161.20

1.241.28

1.321.35



26,852 27,00231,112

38,18635,140

32,116


24


Growth across all distribution segments

Guaranty Trust Bank

GTB

ank

Ove

rvie

w(D

ec 0

9)

Source: Company data, as of 31 August 2008

Growth in POS terminals acquiredGrowth in POS terminals acquiredMarket PositionMarket Position

Growth in Card volumesGrowth in Card volumes Consistent growth in ATM & POS terminalsConsistent growth in ATM & POS terminals



• One of the 5 principal member banks of MasterCard in Nigeria

• One of the top banks in transactions per ATM (efficiency)

• Ranked 2nd in Cards Usage on POS terminals

• 5th in number of card transactions processed

• Ranked 4th in number of Point-of-Sale (POS) terminals

875919

10081,084 1,106

Apr-08 Jun-08 Aug-08 Oct-08 Dec-08

1,032,202 1,082,0431,194,126

1,308,619

1,463,213


230 262298

344398

875919

10081,084 1,106


ATMs POS Terminals

Source: Interswitch Report


Operating Environment

26

Macro Economic Overview (2008)

• In 2008, the Global financial markets suffered a severe downturn. The Nigerian financial markets also experienced a similar correction in what, till March 2008, could have been seen as a bull market.

• Over the course of the year, the Nigerian Stock Exchange Index declined by 45.77%

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

Jan-

08

Feb-

08

Mar

-08

Apr-

08

May

-08

Jun-

08

Jul-0

8

Aug-

08

Sep-

08

Oct

-08

Nov

-08

Dec

-08Guaranty Trust Bank

Ope

ratin

g En

viro

nmen

tFinancial MarketsFinancial Markets Exchange RateExchange Rate

• In 2008, in a reaction to the drastic drop in oil prices and other macroeconomic developments, the Central Bank of Nigeria devalued the Naira from N117/$1 to N139.5/$1 as at December 31, 2008.

GovernmentGovernment

• To reduce a dependence on oil as a major source of GDP, the Nigerian government began an initiative to introduce programs to boost productivity in the agriculture sector e.g. the N200 Special Fund for Large Agriculture Credit Scheme. The measures are expected to reduce the impact of crude oil price fluctuation and inflation.

• It is expected that the CBN will be able to curtail further devaluation current exchange rates if oil prices stay near or above $45 (Government’s 2009 budgetary benchmark)

• The SEC and the CBN released new regulations and guidelines to stabilize the market.

Crude Oil prices Crude Oil prices

• 2008 saw a 53.5% decrease in oil prices from Dec 31, 2007 (95.98) to Dec 31, 2008 ($44.60).

• Inflation increased 76% over the year. Inflation is likely to be sustained due to Naira devaluation in an import dependent economy

105

110

115

120

125

130

135

140

145

Jul-0

8

Aug-

08

Sep-

08

Oct

-08

Nov-

08

Dec-

08

Dec 31 2007 Dec 31 2008 YTD Chg.Nigerian Stock Index 57,990.22 31,450.78 -45.77%Dow Jones Industrial Avg 13,264.82 8,776.39 -33.84%FTSE 100 Index 6,456.90 4,434.17 -31.33%Nasdaq Composite Index 2,652.28 1,577.03 -40.54%Nikkei 225 Index 15,307.78 8,859.56 -42.12%S&P 500 Index 1,468.36 903.25 -38.49%

27

Regulatory Environment

Central Bank of NigeriaCentral Bank of Nigeria RationaleRationale

Guaranty Trust Bank

Ope

ratin

g En

viro

nmen

t

Source: CBN

•May 2008 – CBN issues circular to Banks to adopt common Year end. August 2008 – In reaction to interest rate spikesCBN cancels move to common year end

• Sept 2008 - Introduced discount window facility

•Directive to Banks giving them the option to restructure margin loans until 2009

•Sept 2008 - CBN reduces MPR from 10.25% to 9.75%, CRR from 4% to 2% and liquidity ratio from 40% to 30%. April 2009 - CBN reduces MPR from 9.75% to 8%, CRR from 2% to 1%, and liquidity ratio from 30% to 25%

•Dec 2008 - Downward review of net Open Position Limits from 20% - 10% of shareholders’ funds, Jan 2009 from 10% to 5%, April 2009 from 5% to 1%

•Jan 2009 - Fx purchases by banks to be used for “eligible”transactions and cannot be sold to other banks

•Jan 2009 - Introduction of 5 day utilization for all fxpurchases (not limited to RDAS)

•Jan 2009 - Repurchase by CBN of Fx purchases (Other than RDAS) after the utilization period at 1% maximum below its selling rate at the immediate previous RDAS

•Jan 2009 - Fx receipts by oil firms, Oil services companies and government agencies can be sold only to the CBN

•Feb 2009 - Bid/Offer margin on all Fx transactions by Authorized Dealers restricted to maximum of 1% & 2% around CBN rates for interbank and BDC respectively

•Feb 2009 - Re-classification of BDC operators into classes A&B

•Feb 2009 – CBN commits to managing exchange rates between a band of +/-3%

•2009 – MPC meets to reinstate move to uniform year-end and IFRS reporting for all Banks starting December 2009

• To further strengthen the banking sector and to enable better regulation of the banking industry

• To help banks manage their liquidity and curtain margin loan crisis

• To ensure a controlled workout of margin loans and to prevent undue panic and market over-reaction

• To ensure continued market liquidity which would in turn stimulate economic growth

• To discourage currency speculation by banks

• To discourage official and parallel market arbitrage opportunities

• To reduce artificial demand and distortions in the market

• To reduce fluctuation and stabilise exchange ratesat ± 3%

• To maintain control of large currency transactions and better regulate currency rates

• To reduce fluctuation and stabilize exchange ratesat ± 3%

• To enable easier and more efficient currency controlthe CBN created two tier structure for BDCs

• To manage expectations, create stability and encourage trade

• To further strengthen the banking sector, increase transparency and enable better regulation of the industry


Business Strategy and Objectives


Business Strategy and Objectives (Medium to Long Term)

Cost Control

Monthly budgets

Outsourcing of non-core functions

Staff incentives for cost savings

‘Efficient’ distribution

Invest in reliable technology

Focus onGrowth business

• No. 1 bank in Nigeria in terms of profit before tax and Return on Equity / Profitability• Maintain Cost to Income stability by managing costs

• Expand leadership position across West Africa

2012Goals

Opportunities

Insurance

Mortgage Banking

Investment Banking

Advisory

Capital Markets

Project Finance

Asset Management

Enhance product and service offering

Cost Leadership

Institutional

Capitalise on existing relationships

Oil & Gas, Infrastructure, Telco

Increase penetration in growing sectors

Hospitality, Real Estate Construction, Power

West Africa selective expansion and investments

Efficient, Innovative banking for the Entire Value Chain

Suppliers GTBank’sClient Distributors Customers

Employees

Bus

ines

s S

trate

gy a

nd O

bjec

tives


Thank You

Financial Results - Dec 2008

Documents

Transcript of Financial Results - Dec 2008